Correlation Between Tarena Intl and Grand Canyon
Can any of the company-specific risk be diversified away by investing in both Tarena Intl and Grand Canyon at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Tarena Intl and Grand Canyon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tarena Intl Adr and Grand Canyon Education, you can compare the effects of market volatilities on Tarena Intl and Grand Canyon and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Tarena Intl with a short position of Grand Canyon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tarena Intl and Grand Canyon.
Diversification Opportunities for Tarena Intl and Grand Canyon
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tarena and Grand is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tarena Intl Adr and Grand Canyon Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Canyon Education and Tarena Intl is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Tarena Intl Adr are associated (or correlated) with Grand Canyon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Canyon Education has no effect on the direction of Tarena Intl i.e., Tarena Intl and Grand Canyon go up and down completely randomly.
Pair Corralation between Tarena Intl and Grand Canyon
If you would invest 13,453 in Grand Canyon Education on August 24, 2024 and sell it today you would earn a total of 2,760 from holding Grand Canyon Education or generate 20.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Tarena Intl Adr vs. Grand Canyon Education
Performance |
| Timeline |
| Tarena Intl Adr |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Grand Canyon Education |
Tarena Intl and Grand Canyon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tarena Intl and Grand Canyon
The main advantage of trading using opposite Tarena Intl and Grand Canyon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tarena Intl position performs unexpectedly, Grand Canyon can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Grand Canyon will offset losses from the drop in Grand Canyon's long position.| Tarena Intl vs. Bright Scholar Education | Tarena Intl vs. Laureate Education | Tarena Intl vs. China Liberal Education | Tarena Intl vs. Quality Online Education |
| Grand Canyon vs. Gaotu Techedu DRC | Grand Canyon vs. TAL Education Group | Grand Canyon vs. Strategic Education | Grand Canyon vs. Vasta Platform |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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